PVL3702 Assignment 1
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 26
August 2025
Kenneth Githaiga
[Email address]
, PVL3702 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE 26
August 2025... Shane wants to purchase a limited-edition Porsche motor
vehicle which was recently released in Germany. He visits the local Porsche
dealership in Johannesburg. The owner of the dealership informs Shane that
there is a twelve month waiting period to receive the limited-edition Porsche
model, from the date the order is placed, because this model is
manufactured and assembled in Germany, and thereafter it will be sent to
the Johannesburg dealership in South Africa. Shane signed the ‘Contract of
Sale’ document presented by the dealership with its standard terms and
conditions, which stipulated a purchase price of R2 Million Rand for this
limited-edition Porsche car. In accordance with this offer, Shane was required
to pay the full purchase price to the seller (which is ‘Porsche Johannesburg’)
within 30 days of him signing the agreement, and after the manager of the
dealership requested him to do so, Shane timeously complied with this
requirement. Eight months after signing the ‘Contract of Sale’ document, the
manager of the dealership informed Shane that with reference to one of the
terms in the document, Shane needs to specify if he wants any extras to be
included in the car, and he needs to pay for it. Shane specified to the seller
that he wanted a sunroof installed which cost him an extra R50 000 and he
paid the seller for it, at the time. Shane was then informed by the manager
that he should expect to receive the Porsche limited-edition car in
Johannesburg, in a few months-time. A few months later the Porsche car
arrived in Johannesburg at the dealership. Porsche only manufactured five
cars of this limited-edition model globally, so there was great excitement at
the dealership when the car arrived in South Africa. Porsche enthusiasts
were flying from all over the country to see the car. People were offering
more than double the amount Shane paid for the car. This got the owner of
the dealership to think whether he could sell the car for a much higher price,
as the car had not yet been delivered and registered in Shane’s name. The
owner of ‘Porsche Johannesburg’ sought legal advice from his attorney. The
attorney scrutinised the ‘Contract of Sale’ document and found that whilst
Shane signed it, the seller’s authorised representative did not, even though
the document catered for the seller or its representative to sign the
document. It seems that with all the excitement when Shane signed the
document to purchase this specific Porsche model at the time, subsequently
no one realised that the seller’s authorised representative did not sign the
document. The seller’s authorised representative admitted that it was an
oversight on his part that he did not sign the ‘Contract of Sale’ document, to
indicate the seller’s acceptance of Shane’s offer. Shane assumed that the
document was signed by all the relevant parties. Shane thereafter received a
letter from the seller’s attorney indicating that a valid contract of sale was
not concluded between the parties for the sale of the Porsche limited-edition
car as the seller’s authorised representative did not sign the ‘Contract of
Sale’ document, which according to the attorney meant that the mode of
acceptance was not complied with. The letter went further to state that the
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 26
August 2025
Kenneth Githaiga
[Email address]
, PVL3702 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE 26
August 2025... Shane wants to purchase a limited-edition Porsche motor
vehicle which was recently released in Germany. He visits the local Porsche
dealership in Johannesburg. The owner of the dealership informs Shane that
there is a twelve month waiting period to receive the limited-edition Porsche
model, from the date the order is placed, because this model is
manufactured and assembled in Germany, and thereafter it will be sent to
the Johannesburg dealership in South Africa. Shane signed the ‘Contract of
Sale’ document presented by the dealership with its standard terms and
conditions, which stipulated a purchase price of R2 Million Rand for this
limited-edition Porsche car. In accordance with this offer, Shane was required
to pay the full purchase price to the seller (which is ‘Porsche Johannesburg’)
within 30 days of him signing the agreement, and after the manager of the
dealership requested him to do so, Shane timeously complied with this
requirement. Eight months after signing the ‘Contract of Sale’ document, the
manager of the dealership informed Shane that with reference to one of the
terms in the document, Shane needs to specify if he wants any extras to be
included in the car, and he needs to pay for it. Shane specified to the seller
that he wanted a sunroof installed which cost him an extra R50 000 and he
paid the seller for it, at the time. Shane was then informed by the manager
that he should expect to receive the Porsche limited-edition car in
Johannesburg, in a few months-time. A few months later the Porsche car
arrived in Johannesburg at the dealership. Porsche only manufactured five
cars of this limited-edition model globally, so there was great excitement at
the dealership when the car arrived in South Africa. Porsche enthusiasts
were flying from all over the country to see the car. People were offering
more than double the amount Shane paid for the car. This got the owner of
the dealership to think whether he could sell the car for a much higher price,
as the car had not yet been delivered and registered in Shane’s name. The
owner of ‘Porsche Johannesburg’ sought legal advice from his attorney. The
attorney scrutinised the ‘Contract of Sale’ document and found that whilst
Shane signed it, the seller’s authorised representative did not, even though
the document catered for the seller or its representative to sign the
document. It seems that with all the excitement when Shane signed the
document to purchase this specific Porsche model at the time, subsequently
no one realised that the seller’s authorised representative did not sign the
document. The seller’s authorised representative admitted that it was an
oversight on his part that he did not sign the ‘Contract of Sale’ document, to
indicate the seller’s acceptance of Shane’s offer. Shane assumed that the
document was signed by all the relevant parties. Shane thereafter received a
letter from the seller’s attorney indicating that a valid contract of sale was
not concluded between the parties for the sale of the Porsche limited-edition
car as the seller’s authorised representative did not sign the ‘Contract of
Sale’ document, which according to the attorney meant that the mode of
acceptance was not complied with. The letter went further to state that the
